- Citi is ramping up its services to include crypto custody in 2026.
- The move follows the favorable regulatory environment for digital assets in the US.
The favorable regulatory climate in the US for digital assets continues to entice traditional finance (TradFi) players to dip their toes into cryptocurrencies. The latest bank to join the fray was Citi (Citibank), which confirmed the launch of its crypto custody service by 2026.
Citi Official Confirms Crypto Custody Service
Biswarup Chatterjee, Global Head Partnerships & Innovation at Citi Services, recently discussed the matter with CNBC. According to him, the bank has been ironing out the features of the new service in the last two to three years. He confidently said that they are already making significant progress in the project, which prepares it for its launch by next year.
“We have various kinds of explorations… and we’re hoping that in the next few quarters, we can come to market with a credible custody solution that we can offer to our asset managers and other clients,” Chatterjee told the source.
The Citi Services official also revealed that their upcoming platform could hold native cryptocurrencies directly. He explained that they have a mix of in-house solutions “targeted towards certain assets” for a specific group of clients and third-party solutions for other digital assets.
Favorable Regulatory Climate in the US for Crypto Assets
Besides the growing demand from customers, one of Citi’s key considerations in ramping up its crypto custody solutions was the progress of US President Donald Trump’s administration in paving the way for regulatory clarity on digital asset innovations. In addition to his regime’s crypto advocacy and favorable Executive Orders (EO), the recent passage of the landmark GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) provides a solid federal framework for dollar-backed digital currencies.
Institutions and investors widely view the clearer stablecoin rules as an indication that digital assets like crypto have become an integral part of finance. Moreover, their newly established legitimacy has signaled their move toward mainstream adoption.
Meanwhile, the new law profoundly impacted traditional banks’ risk mitigation. Its definition of stablecoins as non-securities, providing safeguards for consumers, and offering guidelines for their reserves have considerably lifted the legal and systemic uncertainties that have largely kept these institutions away.
Furthermore, regulators like the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Securities and Exchange Commission (SEC) have eased up their tight supervisory requirements for crypto-related businesses, which makes it easier for banks to innovate in the digital assets space.
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